Attorney General Bonta, San Mateo District Attorney Wagstaffe Secure Settlement, Full Refunds for Hundreds of California Travelers

Travel agent failed to offer refunds for trips cancelled due to COVID-19 pandemic

OAKLAND — California Attorney General Rob Bonta and San Mateo District Attorney Stephen Wagstaffe today announced a settlement with Nawas International Travel Service (Nawas), a California travel agency focusing on religious travel, for failing to provide full refunds to consumers whose trips were cancelled during the COVID-19 pandemic. The settlement today, pending court approval, includes at least $567,138 in full restitution of cancellation fees to affected California travelers, $560,000 in civil penalties under the California’s Unfair Competition Law and Seller of Travel Act, and strong injunctive terms that prohibit Nawas from imposing cancellation fees that violate California law. 

“We are proud to announce that today, in partnership with the San Mateo District Attorney, we’ve secured full refunds for hundreds of Californians who were harmed by the illegal practices of Nawas International Travel Service. Travel agents operating in California must comply with California’s strong consumer protection laws, which includes providing timely refunds for cancelled travel,” said Attorney General Rob Bonta. “Today's settlement provides important restitution for those harmed by Nawas's attempt to disregard California law and a reminder to the travel industry that all California Sellers of Travel need to play by the rules."  

“California law provides protections for consumers when purchasing travel from Sellers of Travel. My office was pleased to work with the Attorney General’s Office in this case to ensure these laws were enforced,” said San Mateo District Attorney Stephen Wagstaffe. 

Nawas is a seller and provider of tours to religious sites around the world, including sites in the Middle East and Europe. Nawas markets its tours largely through clergy and many of Nawas’s travelers are senior citizens. In 2020, due to the COVID-19 pandemic, Nawas cancelled hundreds of international tours. After the cancellation, rather than refunding the full amount of the travelers’ deposits and tour payments, Nawas unlawfully withheld “cancellation fees” of between $200 and $1,150 per traveler. In all, Nawas withheld approximately $560,000 in what they termed cancellation fees from approximately 600 California travelers. Nawas’s withholding of those funds violated the California Seller of Travel Act, which requires sellers of travel to provide full refunds for any travel that they are unable to provide, with certain limited exceptions that do not apply here. Although Nawas claimed to travelers that it was allowed to withhold cancellation fees under its own terms and conditions, the Seller of Travel Act expressly prohibits this where, as here, the seller of travel is unable or unwilling to provide the purchased travel. 

The Attorney General’s Office operates the Seller of Travel Program, which registers travel agents and certain other travel businesses operating in California. The attorney general and district attorneys can bring enforcement actions against sellers of travel for violations of the law. We encourage any Californian who believes they have been wronged by a seller of travel to contact their local district attorney and file a complaint with our office at ‪www.oag.ca.gov/report.

Attorney General Bonta is committed to investigating and remedying harm to consumers affected by unlawful and deceptive business practices, including in the travel industry: 

Earlier this year, Attorney General Bonta announced securing a nine-year jail sentence against Iqbal Randhawa for defrauding more than a dozen members of the South Asian immigrant community in Northern California. Between 2017 and 2020, each victim hired Randhawa, a travel agent, to purchase airline tickets, paying him between $1,100 and $12,000. Instead of buying the tickets, Randhawa provided fraudulent itineraries and stole the funds. Also last year, Attorney General Bonta and San Diego District Attorney Summer Stephan announced the sentencing of Marie Martin, a San Diego-based travel agent and registered seller of travel, who embezzled travel funds from more than 150 parents who paid for eighth-grade school trips to the East Coast. After the school trips were cancelled due to the COVID-19 pandemic, Martin refused to provide refunds to the parents, instead spending funds on personal expenses. In 2021, Attorney General Bonta announced a settlement  with Voyageurs International, resolving allegations that the Colorado-based travel agent offered only partial refunds for a cancelled European trip for California high school students and improperly pocketed their clients’ remaining fees. The settlement required Voyageurs to provide a full refund to its 130 California consumers, for a total of approximately $247,000 in restitution.  

A copy of the complaint and proposed settlement can be found here and here. The settlement is pending court approval.